Ill-judged regulation of the financial services sector by the European Union could damage UK growth, the CBI warned on Thursday night.
By Angela Monaghan | The Telegraph
John Cridland, director-general of the business group, said that a number of proposed regulations from Brussels would hold back London's leading business sectors.
In a strongly-worded speech at the CBI's London dinner, he said: "The likely effect of many of Brussels' current proposals will be to damage the UK's prospects for growth. Nowhere is this more acutely the case than for professional and financial services, which are being bombarded with unwarranted regulation."
Mr Cridland said that the EU's proposed financial transaction tax would be particularly damaging to the capital, describing it as "a Brussels revenue-raising exercise, and one that will hit London disproportionately hard".
He said the UK would lose out to other financial centres like New York, Singapore or Hong Kong.
Urging European Commission President José Manuel Barroso to work "with business, not against it", Mr Cridland also criticised Brussels' plans for Solvency II, which sets capital requirements for insurance firms, the capital requirements directive and audit market reforms.